Washington, April 3: The United States has issued a warning to China regarding its actions targeting Panama-flagged vessels, stating that these measures pose a significant threat to a crucial global trade route and could increase costs for businesses and consumers.
US Secretary of State Marco Rubio expressed serious concerns about China’s recent steps against Panama-flagged ships, which he believes undermine the rule of law in Panama through economic means.
He noted that delays, disruptions, and other obstacles to ship movements weaken the stability of global supply chains, raise costs for businesses and consumers, and diminish trust in the international trading system.
These comments follow reports of increased inspections and detentions of Panama-flagged vessels at Chinese ports. Panamanian authorities have acknowledged the rise in scrutiny, which has led to delays and disruptions in maritime operations.
This dispute emerged after a recent ruling by Panama’s Supreme Court concerning the Balboa and Cristobal terminals. The court annulled a long-standing concession granted to a Hong Kong-based company, allowing the government to take control of the ports and appoint new operators.
Rubio stated that the court’s decision upheld transparency and the rule of law, holding private operators accountable to the public interest. He further emphasized that this demonstrates Panama’s reliability as a partner for international investment and business opportunities.
The US has also reaffirmed its support for Panama’s sovereignty. Rubio stated that Washington stands firmly with Panama and looks forward to expanding economic and security cooperation with the country.
The Panama Canal is a vital link for global trade, handling nearly 5 percent of worldwide maritime commerce. Any disruption in ship movements could have far-reaching effects on supply chains, impacting energy, manufacturing, and consumer goods.
US officials have consistently expressed concerns over China’s growing influence on strategic infrastructure near the canal.
My name is Ganpat Singh Choughan. I am an experienced content writer with 7 years of expertise in the field. Currently, I contribute to Daily Kiran, creating engaging and informative content across a variety of categories including technology, health, travel, education, and automobiles. My goal is to deliver accurate, insightful, and captivating information through my words to help readers stay informed and empowered.
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